New Delhi (06.07.2021): The Centre is working on amendments to the General Insurance Business (Nationalisation) Act (GIBNA) to facilitate the privatization of General Insurance Company (GIC). GIC is a public sector insurance company. This is expected to be done during the monsoon session which will begin on July 19. The Act came into force in 1972 providing for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of the general insurance business.

The government is working out on amendments likely to be tabled in the upcoming session to help the privatization of a general insurance company announced in the budget this year. Union Finance minister Nirmala Sitharaman in her Budget 2021-22 had announced a big-ticket privatization agenda, including privatization of two PSU banks and one general insurance company. Niti Aayog was entrusted with the task of recommending a suitable candidate for the privatization of two public sector banks and one general insurance company. The government think-tank is believed to have suggested the name of United India Insurance to the core group of secretaries on disinvestment. The Government is also gearing itself to table amendments in the Banking Regulation Act, 1949, to enable the privatization of two public sector banks. Amendments would be required in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, for privatization.